4 days ago
Asante Gold raises $172m and completes Kinross restructuring
Asante Gold has raised C$237m in proceeds through a private placement and completed the restructuring of its obligations to Kinross Gold.
The private placement involved the sale of 163.3 million subscription receipts at C$1.45 each, with the proceeds now released to Asante Gold following the satisfaction of escrow conditions.
This move is part of a broader $500m financing package aimed at advancing the company's mining projects.
The equity offering is part of the first stage of the financing package, which includes a $125m mezzanine facility, a $50m gold stream, a $10m non-brokered private placement and a $5m draw from the senior debt facility, all expected to close by 15 August 2025.
The subscription receipts have been converted into common shares, subject to a four-month statutory hold period applicable to Canadian securities laws, which expires on 8 November 2025.
Asante Gold has also granted Appian Capital Advisory 16.2 million non-transferrable common share purchase warrants as part of Appian's advisory role related to $175m of the financing package.
These warrants, with an exercise price of C$1.67, are valid until 11 August 2029 and subject to a four-month hold period ending on 12 December 2025.
Additionally, as per the Kinross Agreement dated 11 August 2025, Asante Gold has restructured its debts to Kinross by making a cash payment of $53m, issuing 36.9 million common shares and providing an $80m convertible debenture.
In connection with the agreement, Kinross has also adjusted its security interests in the Chirano Mine, now subordinate to the senior lenders' security package.
The net proceeds from the equity offering and financing package will be used for development and growth at the Bibiani and Chirano mines, the cash payment to Kinross, retiring short-term liabilities and general working capital.
This development follows Asante Gold's announcement in January of accelerated operations at the Bibiani Mine, supported by a $100m gold forward sale to support expanded operations.
"Asante Gold raises $172m and completes Kinross restructuring" was originally created and published by Mining Technology, a GlobalData owned brand.
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